The second trading day of 2010 strike out a beautiful rally with KLCI closed at 1288.24 (+12.49, +0.98%). The intraday broke out to a new high touching 1290.55 since last Mar-09. This broke out is supported by good traded volume of 1.864bil shares, up by +64.9%. Today, the volume mainly still contributed by 2nd & 3rd liners, of course some key CI components also actively participated already.
There are 658 up counters and 184 down counters. The RSI is exceeded 70 level threshold closed at 71.2, STC retracts slightly with %K at 93.38 and %D at 90.46. The Bollinger band further expended to 37%. The MACD already confirmed crossing the trigger line and hook up further. In short, all indicators show that the KLCI short-term direction is bullish biased.
The KLCI’s nearest resistance is 1300-1305 (last peak during Jun-08) and the support is at Bollinger middle band at 1269 now.
In the weekly chart analysis, so long as the KLCI could stays above 1274 for this week, the uptrend momentum could dwell probably toward next few weeks to come. Since it broke 1288, we are awaiting KLCI to reach 1300-1305. And should it go beyond 1305, we may wait for 1353 (the gap during Feb-08 which coincide with the Fibo level). Please see charts below.
Stocks Watch List:
LBS and LBS-WA closed flat on Tuesday. Should they close “red” on Wednesday, that may suggest the exhausted rally and correction could be proceeding.
E&O closed 2.6% higher to 1.18. Since a doji star is formed today, we concern that a correction may happen the next day. Should minor correction were to take place for a few days, the possible support levels are 1.14 and 1.09. However, all indicators are still supporting this counter on the up trending direction. Should rally were to continue, the resistance may be at 1.23 / 1.31 / 1.41.
Efficen closed 2.3% higher to 0.225. Again a doji star is formed today, we concern that a correction may happen the next day. Should minor correction were to take place for a few days, the possible support levels are 0.215 and 0.205. However, all indicators are still supporting this counter on the up trending direction. The upside nearest resistance could be around 0.240 / 0.260 / 0.275.
Mtouche closed 16.7% higher to 0.350. All indicators are supporting this counter on the up trending direction. The upside nearest resistance could be around 0.380 / 0.405 / 0.455.
